Southern Silver Exploration Corp. (CVE:SSV) announced Tuesday it has appointed Jean-Pierre Colin as a director of the company and Fred Sveinson as consulting mining engineer for the Cerro Las Minitas project in Mexico. The company also gave an update regarding its Dragoon project in Arizona.
Colin has been an investment banker since 1980, and was formerly the director and head of corporate finance at Octagon Capital, from 2004 to January 2010. Prior to Octagon, he was an investment banker with Desjardins Securities, executive vice-president of Deacon Capital, and senior vice president of Richardson Greenshields of Canada.
Meanwhile, Sveinson is a professional mining engineer with more than 40 years experience in all stages of mine development at operations ranging in size from 100 to 2,000 tonnes per day in Canada, the US, South America and Africa. Most recently, from 2004 to 2010, he was president and CEO of Merit Mining Corp., a Vancouver-based company with two advanced-stage mining projects, including underground operations and a mill at Greenwood, BC.
His senior positions have included general manager of Echo Bay's Lupin and Sunnyside operations, VP of Tonto Mining and Dynatec Mining, and president and CEO of Gold City Industries.
President Lawrence Page, commented: "Jean-Pierre will assist the company in its introduction to institutional investors to raise capital for advancement of its mineral resources, specifically at Cerro las Minitas in Durango, Mexico where the company is rapidly expanding the resource of this poly-metallic deposit. Fred Sveinson will assist the company in developing the most optimum approach to exploration and development of Cerro las Minitas."
Earlier this week, the company said it bought a 5.01 hectare parcel of land at the Cerro Las Minitas property for a potential mill construction site. The property overlies portions of mineral claims currently under option to Southern Silver, where a 10,000 metre diamond drill program is underway. If results from drilling warrant ongoing exploration, the piece of land acquired is to provide a convenient site for the construction of a mill.
Southern Silver also announced Monday a non-brokered private placement financing of 8.0 million units, at a purchase price of $0.15 each, for gross proceeds of $1.2 million. Each unit will consist of one common share and one share purchase warrant.
The company said proceeds from the offering will be used to fund an expanded exploration program at Cerro Las Minitas, where Southern has so far completed around 30 percent of its 10,000 metre drill program.
Separately, the company gave an update today on its Dragoon property in southeast Arizona, which contains exposed copper-molybdenum mineralization.
The property is highlighted by “leached cap” rocks which may be of similar size and grade as the Resolution deposit located five kilometres east of Superior, Arizona.
Freeport McMoRan has the option to earn a 70 percent interest in Dragoon by spending $3 million prior to December 31, 2012. Since 2010, Freeport has conducted geophysics, soil geochemistry, and over 2,100 metres of drilling, all testing the potential for a buried porphyry copper-molybdenum system. Southern said Freeport has now advised the company that it plans to conduct additional soil gas surveys to potentially expand newly identified geochemical zones, after which it will drill a third exploration hole, expected to begin in early 2012.